Combined Liquidator and HMRC Claim of £1,345,484 settled by our Misfeasance Claims Solicitors for £65,000 – less than 5% of the original claim
The initial misfeasance claim from the liquidator was for £1,133,404, with a further £212,080 from HMRC, a ruinous amount that put his entire financial future on the line, so our Misfeasance Claims Solicitors got to work quickly. Our Director client had the following to say:
“Following on from the liquidation of my company, the Liquidator, via his Solicitors, sent me a letter before claim alleging that I had breached various fiduciary and statutory duties owed by me to the company under the Companies Act and under the Insolvency Act 1986, claiming total payment of an eye watering £1,345,484
Our client had no ability to pay anything like that sum, even if it was proven that that was what he owed.
“I had at all times been open and co-operative with the Liquidator following the winding-up of the company. I was stunned to receive such a claim. I was under the impression that the Liquidator was on my side. I quickly came to learn this was not the position. I made every attempt to resolve the matter at an early stage.”
The Client Contacted our Misfeasance Claims Solicitors, Seeking Expert Advice
“With that threat hanging over my head, I knew I needed specialist legal advice. Where to go? This would be one of the most important decisions of my life. My entire financial future was on the line. I was referred to NDP by my Accountant. I researched the website and reviewed their previous testimonials on the website. I soon appreciated that they had the skills and experience to assist me.
My point of contact was with Sukhbir Mall of NDP, a Specialist and Experienced Insolvency Litigation Solicitor and I discussed with him the claims made against me. I emailed him a copy of the claim letter. Sukhbir quickly analysed the issues with me over the phone and immediately put me at ease and listened carefully to what I had to say. I met him the day after the call.
After our meeting he wrote me a detailed letter confirming his proposed strategy moving forward. All roads led to NDP preparing a letter of representations to the Liquidator’s Solicitors, detailing my defence position. Sukhbir worked with his Solicitor colleague, Doug McEvoy, on my case. They were both great guys to work with.
They listened to everything I had to say and made it clear that fully understanding all the circumstances of the case were vital. They explained to me that the Liquidator was actually a stranger to the events in the company. Only I, as the Director, had lived the story and could give the full and complete story.”
We Enabled our Client to Avoid the Commencement of Legal Proceedings
Our misfeasance solicitors pursued the following defence strategy:
“Sukhbir took steps to ensure that the Liquidator did not issue any Court proceedings in the meantime and suggested that we meet with my Accountant to explore matters further.
He then set about tackling each of the 5 constituent parts of the claims, intended to defeat the allegations and significantly reduce the amount being demanded by the Liquidator in any event.
Sukhbir’s strategy and calming approach to the matter immediately eased my stress and made me feel more settled about the threatened claims.”
Dealing with the HMRC claim of £212,080 – plus interest and costs
“To rub salt into the wound at the same time, I received a letter of claim from HMRC for £212,080 arising from the liquidation of the company, over and above the sums the Liquidator was pursuing. I was panicked by that claim and sought Assistance from my Accountant. However, this came at a disastrous time where my Accountant and close friend had been hospitalised with Covid19 and Pneumonia.
Sukhbir was, however, able to very quickly respond to HMRC and then engage with HMRC as to the detail of their claim.”
Settlement achieved with all parties for £65,000
“In just a few weeks, Sukhbir was able to set out my response position to HMRC and the Liquidator in relation to the 12 claims, and also made a powerful argument to the Liquidator and HMRC to agree to resolve both claims together.
What was most pleasing to me was that Sukhbir and Doug were able to get HMRC to agree that, subject to any final settlement with the Liquidator, HMRC would discontinue any claim against me.
This left me open to settling the matter with the Liquidator and thereafter knowing I could get both claims off my back. I was alive to the fact that certain sums were owed, albeit far less than that which was being claimed, and with the assistance of NDP, we were able to negotiate a figure of £65,000.00 in full and final settlement of all claims. HMRC wrote to me and confirmed there was no further case to be considered.”
The Commercial Considerations of the Case
“NDP made my (less than healthy) overall financial position quite clear to both Claimants. Allied to strong legal arguments, this excellent outcome was achieved, saving me £1,280,484.
Matters were resolved quickly. We agreed the terms of the settlement in a few days and were able to significantly reduce the value demanded from me. I can honestly say that I received the highest level of legal advice and service throughout the duration of my engagement with NDP and I cannot thank NDP for their help during one of the darkest times of my life.”
Talk to our Misfeasance Claims Solicitors if facing a Claim from Liquidators
As this case study/testimonial shows, receiving a misfeasance claim from a Liquidator and HMRC is highly stressful, particularly as they follow on from the already stressful situation of insolvency and company liquidation.
They key to any successful defence in this arena is to find out all the pertinent facts and circumstances from the director involved, as the Liquidator and HMRC are highly unlikely to have them. From this we plan our strategy and very often achieve significant reductions in the claim, as in this case.
Contact our solicitors or call us on 0121 200 7040 for an initial chat if you are facing a misfeasance claim from a liquidator. The sooner you get in touch, the quicker we can get to work to make a difference.